Disaster Recovery Terms Clarified By EFTA

The Electronic Funds Transfer Association (EFTA) has made recommendations to the FFIEC (Federal Financial Institutions Examination Council) to adopt definitions to create a common level of understanding of disaster recovery terms.

Disaster recovery in the area of EFT took on a whole new importance last spring when the weight of snow on a roof in New Jersey knocked out 5,000 ATMs for several days. Until that time, many financial institutions felt they were prepared for disaster if their demand deposit functions were covered. The incident with the ATMs underlined the importance of other functions.

Some of the definitions to be included are fairly straightforward. For instance a "seamless" disaster recovery plan would be one that can be up and running in an hour or less. A "hot" site would be one that could be activated in 72 hours or less. A "warm" site would take four to 14 business days. A "cold" site would provide for disaster recovery in 14 to 60 business days. Lowest on the list would be a "plan only", indicating that no specific provisions are in place except an outline for making arrangements. The FFIEC, which will consider the standards, oversees bank examinations in the United States.

Copyright © 1994 Bankers' Hotline. Originally appeared in Bankers' Hotline, Vol. 4, No. 7, 1/94